World Economy: Rough Road Ahead

WSJ's Sudeep Reddy checks in on Mean Street with the World Bank's dim outlook for global economic stability over the next several years. Photo: Getty Images.

This transcript has been automatically generated and may not be 100% accurate.

... the ... the World Bank is taking some back with a just just add a little or ... no role global growth the contract two point five percent in two thousand twelve ... hats off point two percent ... the euro economy to contract point three percent that she seems a little light about to get your take on that CD ... enter a developing country slowing to five point three percent in two thousand twelve ... of ... city bought a house credibly you take the World Bank in its predictions ... on Sunday ... so the better the knots of but ... I can look of this oversight your economy to contract one point three percent ... I just don't well the time ... and this is perfectly out with legitimate thing to to question in the case ... I've that if you look at their overall global picture ... two point five percent global growth in twenty twelve would be the slowest of the recovery slower than we had last year and that's that's something to be concerned about because if you look at the baseline assumption ... that they had in all these forecasts is that the euro zone ... doesn't fall apart that the crisis of dates in the same way ... that has ... over the last two years and so this is all assuming a fairly rosy scenario ... of of everything kind of muddling ... along as it has before for the euro area all of these institutions that come up with growth ... figures ... and especially the international ones ... which are of course have the Europe as part of their membership they don't wanna get too dire Enso boasts projections ... allow for the euro area as a whole shows some ... small recession right is solely due to holding back their holding back on this this is the intellectual Quillen of a ... Spanish bank with a ... bad portfolio condo loans on a beach somewhere ... do they know that the growth is going to be slow or they just don't want to say ... well want one thing they're good they're ... doing in all these forecasts is trying to send the message is that ... guy if policy actually ... takes out and catches up with some of these problems ... then you'd only have a mild recession in Europe and what they're trying to do is encourage policymakers ... they actually do have some ... some pretty dire scenarios in here as well if you are his face another crisis for instance ... developing countries instead of seeing ... up five percent of ... growth are collectively might seem eighty one percent growth collectively and so if you actually start factoring in the financial crisis the effects of it ... that things look pretty ugly and they actually have some some downside stereos ... and all these cases ... the boat you could start imagining all sorts of ... really ... it even worse scenarios ... all of the shows that that is that ... what we're seeing now is just from the effects of the slowdown in Europe ... you're having this victory closing Asia remittances tourism all of these effects are are are released dragging down the entire world ... I'm in ... just with the state there were now and obviously could get worse he listened to my posted to think about the creation of the World Bank ... and the idea that the European countries ... would be destabilizing forces for the world economy as ... if it disappears contributors ... the World Bank to them ... in your dealings with them is there a feeling that somehow the world's gone out of whack or a stray that when out talking about ... um rest when you're ... um that is what the World Bank and of course focuses on is that developing countries the most and one of the things that their ... their role in Europe of parts of Europe for developing countries before and now ... the focus alot on the rest of ... the emerging economies which have for Purdue somewhere between two-thirds and three fourths of global growth ... since the crisis and so ... that the concern here is that the engine for global growth ... is now ... starting to to die down a little bit ... and that's a big problem especially because ... the any nation that we always talk about when we talk about the Federal Reserve and the ECB and central banks in that the advanced economies ... the ammunition that ... emerging economies had to fiscal same stimulus is a lot lower than it was ... before coming out the crisis and one reason we're able to read on so so well out of the crisis ... I'm on a global basis is because I've emerging economies were able to bounce back easing are ... there ... any nation Tepco's and they really just don't have ... as much as they had before ... and that that ... suggests that if